IWCCI Claims That Pak-China Free Trade Agreement Is A Source Of Frustration For Business Community
IWCCI Claims That Pak-China Free Trade Agreement Is A Source Of Frustration For Business Community: Founder president of Islamabad Women Chamber of Commerce and Industry has stated that free trade deal between Pakistan and China is a source of frustration and disappointment for the business community.
According to her the deal has resulted in losses to the tune of billions of dollars to Pakistani economy, therefore, it should be improved as IWCCI sees China unwilling to address concerns of Pakistan regarding trade and business. The negotiations to finalize the FTA with China began in 2012 remain inconclusive.
“Pakistan should withdraw from the agreement”, said Samina Fazil, founder President, IWCCI. She added that Pak-China FTA should be amended without further delay as it is heavily tilted towards Beijing resulting in heavy losses to the country.
Reason of Frustration
- After the FTA, the Chinese exports have jumped from 3.5 billion dollars to over 16 billion dollars making China our biggest trading partner while Pakistani exports have increased insignificantly.
- The trade gap has surged from 2.9 billion dollars to over $32 billion which has created resentment and uncertainty in the business community.
- The share of Chinese imports in the non-oil sector has surged to 36% while China has signed trade deals with other countries making FTA with Pakistan ineffective.
- The FTA signed in 2006 has left Pakistani exporters at a disadvantage against Chinese competitors which is evident from the fact that Pakistan’s trade deficit with China tripled between 2012 and 2017.
- The friendly nation can absorb all the exports of Pakistan which are not more than 20 billion dollars.
While in another event Islamabad Chamber of Commerce and Industry President Sheikh Waheed stated that foreign exchange for the country can be increased by improving the pharmaceutical industry. It has the potential to earn billions of dollars.
As per ICCI despite decline in Pakistan’s exports during the last few years, exports of pharma industry have witnessed 26% growth during the last five years as r pharma exports increased from over US$ 169 billion in 2012-13 to US$ 213 billion in 2016-17.
He said that government should consider allowing contract manufacturing to pharmaceutical companies that would give boost to foreign investment in this sector and promote exports and also emphasized that government should reconsider restrictions on contract manufacturing in the best interest of the country.
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